The Effect of Gasoline Prices on Household Location

Molloy, Raven; Shan, Hui

doi:10.1162/rest_a_00331

Cited by 40 publications

(17 citation statements)

References 24 publications

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“…The secular changes are that the percentages of movers relocating closer to work/school and for convenience to their job increase in the study period while prices are increasing. Our speculation is supported by the findings in existing studies that found gasoline prices have statistically significant effects on household locations within three years of the move (e.g., Molloy and Shan 2013). However, the threshold of the time lag should be further investigated in future research.…”

Section: Methodssupporting

confidence: 83%

Are Gasoline Prices a Factor in Residential Relocation Decisions? Preliminary Findings from the American Housing Survey, 1996–2008

Chi

Boydstun

2016

Journal of Planning Education and Research

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Residential relocation choice is affected by numerous factors, but gasoline prices as a potential factor have not been investigated. This study examines gasoline price changes and residential relocation choice using 1996–2008 American Housing Survey data. We found higher gasoline prices are associated with a higher percentage of movers choosing locations closer to workplaces. The findings have implications for addressing the impacts of volatile gasoline prices on land use planning and policies; resilient “smart cities or communities” are one possible solution.

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Section: Methodssupporting

confidence: 83%

Are Gasoline Prices a Factor in Residential Relocation Decisions? Preliminary Findings from the American Housing Survey, 1996–2008

Chi

Boydstun

2016

Journal of Planning Education and Research

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“…This article presents evidence overturning in part and extending in part the results of Molloy and Shan (), which leverages similar variation and assumptions about gas price expectations to study housing supply . Molloy and Shan use a discrete difference‐in‐differences model to assess the impact of gasoline prices on real estate prices for especially long‐duration commutes, whereas I focus on a continuous measure of distance.…”

Section: Introductionsupporting

confidence: 54%

Commuting Costs and Geographic Sorting in the Housing Market

Blake

2016

Real Estate Economics

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The demand for housing is heavily influenced by access to employment opportunities. The cost of gasoline determines, in part, the cost of such access and therefore the relative demand across markets with varying commuting needs. Locally exogenous gasoline price movements demonstrate the causal impact of higher fuel costs on housing markets: a shift of market demand toward real estate markets with less costly commutes. Higher fuel prices increase the value of real estate with shorter commutes and easier access to driving alternatives relative to more driving dependent homes. Every incremental $1 per gallon of gasoline reduces home values by 0.143% for every additional mile relative to counterfactual markets, or $5,200 for the average home and commute. This translates into a discount rate of 6.4%, comparable to mortgage rates for the period.

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“…Nevertheless, an expansion could still affect housing prices via its impact on housing supply, a critique raised by Molloy and Shan (2013) in the literature measuring the impact of gasoline prices on house prices. If HDB constructs more apartments in affected areas in expectation of increased demand, the increase in housing supply will mitigate the expansion price effect.…”

Section: Modelmentioning

confidence: 99%

How Do Users Value a Network Expansion? Evidence from the Public Transit System in Singapore

Fesselmeyer

Liu

2016

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I EIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. ABSTRACT How Do Users Value a Network Expansion? Evidence from the Public Transit System in SingaporeWe estimate the network externality of a public transit system by examining the effects of its expansion on the housing market. Our results show that a major expansion of Singapore's Mass Rapid Transit (MRT) system increased the price of apartments within 0.5 km of a preexpansion station by 1.6% to 2.1% relative to apartments that were further away from a station. Evaluated at the mean housing price, the expansion increased the value of preconnected apartments by at least S$386 million, which is equivalent to about 8% of the estimated S$5 billion cost of the expansion. JEL Classification:H4, R21, R42, H23

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The Effect of Gasoline Prices on Household Location

Cited by 40 publications

References 24 publications

Are Gasoline Prices a Factor in Residential Relocation Decisions? Preliminary Findings from the American Housing Survey, 1996–2008

Are Gasoline Prices a Factor in Residential Relocation Decisions? Preliminary Findings from the American Housing Survey, 1996–2008

Commuting Costs and Geographic Sorting in the Housing Market

How Do Users Value a Network Expansion? Evidence from the Public Transit System in Singapore

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